Currently our HMO is open to our dependents with the following provisions:
1. Enrollment of dependents is subject to 70% Employee Share through a 10-month salary deduction
2. 30% is Company share
3. Enrollment of dependents has no cap as long as employee has 40% net take home pay
4. With 100,000 coverage per illness/year
Our Management would like change this entitlement with these provisions:
1. No more HMO coverage for dependents
2. Registered and qualified dependents will be given a fixed amount per quarter
e.g – an employee has 4 dependents (wife, 3 children).
6000/dependent = 6,000 X 4 = 24,000
Each quarter employee receives 6,000
Any legal implication if we implement the new scheme?
Is this not considered as diminution of benefits.
Appreciate your response on this matter.